Sweden ‘s gambling regulator notified that an imposed deposit maximum could drive high-spending consumers to unlicensed websites where they have less consumer security.
Swedish government proposes an enforced deposit limit of 5000 SEK (€471) per week for online gamblers. Government wants to protect citizens during coronavirus lockdowns. Swedish gambling regulator warns that deposit limits will have a negligible effect on most gamblers and could drive high-spending players to unlicensed websites where they may have even less protection for consumers.
During the coronavirus-related lockdowns across Europe, the European Gaming and Betting Association (EGBA) believes healthier gambling is more relevant than ever today. However, as illustrated in a recent written submission to the Swedish government, EGBA argues that the proposed deposit limit may have unintended and negative consequences-affecting more customers than protecting them.
The reason for the prohibitions is not evidence-led – online gaming in Sweden has declined-
Based on available data, since the coronavirus lockdowns, there has been no increase in online gambling in European countries – including Sweden. On the contrary, online gaming has decreased in Sweden by 6 percent and it has also declined elsewhere as stated by, for example, the Belgian, Danish and UK regulators.[1] Rather than each-size-fits-all regulations, EGBA advocates proactive steps, including tailored interventions, to protect those at risk of problem gambling at this moment.
EGBA argues that the positive benefits of a deposit limit would be negated by detrimental consequences on channelization, e.g. customers may play on black market or unlicensed websites to circumvent the constraints. According to a new survey, 40% of Sweden’s online casino users, and 34% of sports gambling customers, currently gamble on unlicensed websites or will consider doing so. The deposit limit may, as Spelinspektionen rightly warn, force high-spending players towards unlicensed websites which undermine their consumer security – these websites are readily accessible, easy to reach and do not enforce any restrictions or responsible gaming initiatives, even the country’s Spelpaus self-exclusion system.
Maarten Haijer, Secretary General, EGBA said: We understand that politicians seek to reassure and protect their citizens during these difficult times, but the proposed gambling restrictions could actually harm more customers than they protect. Many Swedes are already gambling on unlicensed websites and these restrictions will make unlicensed websites – which don’t apply any limits – even more attractive to them. We must remember gambling is human behavior, consumers will always make their own choices and top-down regulation rarely works. In this case, it could have detrimental or counterproductive effects by pushing more gambling onto unregulated websites.”
